The Hidden Cost-of-Living Crisis Most Americans Never Hear About
When fraud, lawsuit abuse, and hidden financial interests drive up legal costs, families and small businesses pay the price through higher insurance premiums, higher prices, and reduced economic opportunity.
ANNUAL STATEMENT
NOTICE OF HIDDEN COSTS
ACCOUNT
EVERY AMERICAN HOUSEHOLD
SOURCE
LEGAL SYSTEM ABUSE
BILLING PERIOD
EVERY YEAR
AMOUNT PASSED ON TO YOUR HOUSEHOLD
$6,000*
*nearly $6,000 per American household, every year
HIDDEN
HOW IT WORKS
HOW DOES ABUSE BECOME A $6,000 HIDDEN TAX?
- Legal System Abuse
- Four Mechanisms
- Higher Claims + Legal Costs
- Through the Economy
- Where It Shows Up
- American Families
Scroll to follow the cost ↓
The source
LEGAL SYSTEM
ABUSE
Bad actors exploit the civil justice system for financial gain. This is where the hidden bill begins.
Four mechanisms
Staged accidents & organized fraud rings
Misleading lawsuit advertising
Inflated medical billing & unnecessary treatments
Third-party litigation financing
Four abusive practices feed the same pipeline.
The pressure builds
HIGHER CLAIMS
+ HIGHER LEGAL COSTS
Every mechanism makes claims more expensive to settle, raising legal costs throughout the system.
The pass-through
INSURERS
→
BUSINESSES
→
THE ECONOMY
The cost doesn’t stop where it starts. It moves through insurers, businesses, and employers before it reaches you.
Where it shows up
HIGHER INSURANCE COSTS
HIGHER PRICES
FEWER ECONOMIC OPPORTUNITIES
No invoice ever arrives. The bill hides inside premiums, price tags, and paychecks.
The bill lands
AMERICAN FAMILIES
TOTAL PASSED ON
NEARLY $6,000
Per household. Every year. Abuse → higher costs → passed through the economy → you pay.
A Hidden Tax on American Families
What legal system abuse costs the U.S. economy
JOBS LOST
OVER 5 MILLION
LOST ECONOMIC OUTPUT
$602 BILLION
ANNUAL COST TO SMALL BUSINESSES
$160 BILLION
ANNUAL COST PER HOUSEHOLD
NEARLY $6,000
WHAT IS LEGAL SYSTEM ABUSE?
Legal system abuse occurs when bad actors exploit the civil justice system for financial gain, driving up costs for consumers, businesses, and communities. While most claims are legitimate, abusive practices can increase costs throughout the economy.
Staged accidents and organized fraud rings
Criminals intentionally cause crashes and file fraudulent claims.
Misleading lawsuit advertising
Television commercials, billboards, and online advertisements promote large settlements while downplaying fees and expenses, such as attorney fees, litigation funding costs, medical liens, and other expenses, that can significantly reduce a plaintiff’s recovery.
Inflated medical billing and unnecessary treatments
Unnecessary treatments, excessive testing, and inflated medical billing practices can increase claims costs.
FINANCING AGREEMENT · §4.2 RECOVERY
…the Funder shall be entitled to a portion of any future settlement or judgment arising from the Claim…
Third-party litigation financing
Outside investors can profit from lawsuits, raising questions about transparency and accountability.
How does legal system abuse affect you?
Higher Insurance Costs
When claims become more expensive to settle, legal costs increase throughout the system. These added costs can contribute to higher insurance expenses.
Higher Prices for Everyday Goods and Services
Businesses facing rising litigation costs often factor those expenses into the prices consumers pay for products and services.
Fewer Opportunities for Small Businesses
Rising legal costs can limit the ability for small businesses to hire employees, expand operations, increase wages, or invest in their communities.
Less Transparency for Consumers
Many consumers are unaware of the financial interests that may influence litigation, including investors, medical financing arrangements, and other parties that may profit from a lawsuit.
FOLLOW THE MONEY
Who profits from a lawsuit?
Third-party litigation financing (TPLF) allows outside investors to finance lawsuits in exchange for a portion of future settlements or judgments.
Consumers deserve greater transparency regarding who is financing litigation and who stands to profit.
OUTSIDE INVESTORS
finance the lawsuit
↓
THE LAWSUIT
settlement or judgment
↓
AN AGREED PORTION RETURNS TO INVESTORS
Consumers Deserve Fairness and Transparency
Americans shouldn’t have to pay a hidden tax caused by fraud, abuse, and financial gamesmanship within the legal system. Reforms that promote transparency, accountability, and consumer protection can help reduce costs and improve affordability for families.
Learn the facts. Share the information. Support reforms that put consumers first.